Govt Mulls Instalment Recovery of Rs217bn Super Tax Arrears Ahead of IMF Review

Government Considers Instalment Plan for Rs217bn Super Tax Arrears Ahead of IMF Review

The government has indicated flexibility in recovering super tax arrears amounting to Rs217 billion, proposing instalment-based payments to ease pressure on businesses ahead of the upcoming International Monetary Fund (IMF) review mission expected later this month.

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial told the Senate Standing Committee on Finance that the actual recoverable super tax arrears stand at Rs217 billion, rejecting higher figures circulating in public discourse. He said the FBR was prepared to pursue recoveries on a case-by-case basis to avoid disrupting business operations or forcing closures.

Langrial said the Supreme Court’s recent ruling had removed all legal obstacles by affirming the government’s authority to impose and collect the super tax. He added that enforcement would follow due legal process and would not target genuine business activity.

Members of the committee expressed concern that aggressive recovery measures could compel companies to shut down or relocate. Senators called for payments to be spread over two to three years and cautioned against coercive actions such as bank account freezes or arrest threats. FBR officials assured lawmakers that phased recovery options were being actively considered.

Finance Minister Muhammad Aurangzeb informed the committee that Pakistan’s external financing requirements were fully covered and confirmed that discussions with the United Arab Emirates were ongoing. He also said the IMF’s third review mission is expected by the end of February, with progress linked to revenue stability and the continuation of structural reforms.

Separately, officials disclosed that Pakistan is preparing to introduce new designs for currency notes ranging from Rs10 to Rs5,000, incorporating enhanced security features. The State Bank of Pakistan confirmed that the Rs5,000 note will remain in circulation, with final approval of the new designs pending from the federal cabinet.

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